Engel & Völkers, the leading platform for real estate agents, is once again setting forth its course of growth: Since autumn 2022 Engel & Völkers has been represented in Croatia with a licence in the region of Istria. The Mediterranean flair and rich cultural heritage, along with its renowned hospitality, picturesque countryside and diverse range of properties, make this country on the Adriatic Sea not only one of Europe’s most popular holiday destinations but also an attractive residential and investment location. “We are very excited about this expansion. Croatia’s real estate market is diverse and full of potential. Since the country’s entry into the Schengen Area and the introduction of the euro at the beginning of the year, we have been seeing a new dynamic shift away from the image of a low-cost holiday alternative towards an up-and-coming destination with high potential for investment,” says Patrick Kohl, Managing Director of Engel & Völkers Istria.
The Istrian peninsula in the north of Croatia is one of the most in-demand locations for first and second homes in the country, thanks to its excellent infrastructure and direct proximity to neighbouring European nations. In recent years both the real estate sector and the hotel and restaurant industry in the region have experienced a boom, reflected in the many new business openings and project developments that have sprung up. One particular feature of the region is the premium real estate on offer in prime locations along the coast at relatively moderate prices. The average price per square metre in these prime locations is approximately 4,000 euros. At their peak, prices can reach up to 8,000 euros. Inland too, amid Istria’s tranquil countryside dotted with medieval hilltop towns, olive groves and vineyards, there are many estates with ample potential for development. “The Istrian Mountains are reminiscent of Italy’s Tuscany region and are still considered an insider tip. But increasing numbers of prospective buyers from abroad are falling in love with the atmosphere of this place and the authentic traditional style of the family homes here. Prices range from an average of approx. 3,000 to 5,000 euros per square metre. This price level is very moderate compared to other Mediterranean destinations,” Patrick Kohl reveals.
Due to the high level of demand, the team at Engel & Völkers Istria is set to grow this year with more agents coming on board. “The introduction of the Euro has seen the spotlight turn even more to Croatia as a residential location. Interest in primary residences is also on the rise, as the pandemic comes to an end and remote working remains a viable option. Besides modern new-build apartments, classic detached family homes directly on the coast are in especially high demand. The majority of our clients come from Germany, followed by Slovenia and Hungary. Factors like the reasonable prices and favourable cost of living compared to other popular holiday destinations are also driving Croatia’s appeal as a real estate location beyond the borders of Europe. 2023 is set to be an exciting year for Croatia and we are very optimistic about how the market will develop moving forward,” Patrick Kohl adds.
